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    • Trouncer2002
    • By Trouncer2002 4th Dec 17, 3:49 PM
    • 4Posts
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    Trouncer2002
    Critical Illness Mis sold - Query ?
    • #1
    • 4th Dec 17, 3:49 PM
    Critical Illness Mis sold - Query ? 4th Dec 17 at 3:49 PM
    Can anyone help ?

    I was sold 'Critical Illness' cover on two of my mortgages. It was to cover mortgage payment if I ver had CI. The forms I signed indicated I was of good health and no illness now or in the future (non-smoker etc.). I was also in full employment which would have paid at least 3 times my salary which would have covered the mortgage amount at the time. This was in 1997 !

    The financial company was taken over by another finance company which, I believe, went into 'default' and to make compensation inquiries to the FSCS. However, the FSCS told me to fill in the online form. When I did this, and filled in the names of the company who advised me, it came back with the message :-

    Sorry, you can't claim for compensation.

    Was there a cut off date to make CI claims ? Do I not have any other option other than the CAB ? Has anyone been to the CAB on something like this and had feedback ? Success ? .......or should I forgot this whole thing ?

    If anyone could help it would be much appreciated otherwise will I just have to accept I lost money from the mis selling CI to me ? - Thanks
Page 1
    • dunstonh
    • By dunstonh 4th Dec 17, 3:57 PM
    • 89,943 Posts
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    dunstonh
    • #2
    • 4th Dec 17, 3:57 PM
    • #2
    • 4th Dec 17, 3:57 PM
    I was also in full employment which would have paid at least 3 times my salary which would have covered the mortgage amount at the time. This was in 1997 !
    None of that matters with CIC. you are also mistaken. The 3 times salary would be death in service. Not illness. Sick pay can range from zero to 12 months typically.

    Was there a cut off date to make CI claims ?
    Have you suffered a claimable event?

    Your title says missold but you are now talking about making a claim. Whilst most CIC policies say you need to claim within 120 days, most providers will go beyond that if medical information is available.

    If you mean to complain, then there has never been any period where CIC policies were believed missold and therefore no cut off. However, you bought pre-regulation. So, even if there was an issue, there is no-one to complain to.

    Do I not have any other option other than the CAB ?
    Where do you think the CAB comes into it?

    Has anyone been to the CAB on something like this and had feedback ?
    CIC sales complaints are unusual.

    If anyone could help it would be much appreciated otherwise will I just have to accept I lost money from the mis selling CI to me ? -
    How have you lost money?
    Why do you think you were missold?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Moneyineptitude
    • By Moneyineptitude 4th Dec 17, 5:47 PM
    • 18,907 Posts
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    Moneyineptitude
    • #3
    • 4th Dec 17, 5:47 PM
    • #3
    • 4th Dec 17, 5:47 PM
    The forms I signed indicated I was of good health and no illness now or in the future
    Originally posted by Trouncer2002
    How could you sign a form indicating that you would never be sick in the future?
    I was also in full employment which would have paid at least 3 times my salary which would have covered the mortgage amount at the time.
    Originally posted by Trouncer2002
    That assumes that you would continue working for that employer, something you could not predict 20 years ago. It also sounds like "Death In Service" rather than sickness payment.
    This was in 1997 !
    Originally posted by Trouncer2002
    So Pre-Regulation of General Insurance.

    the FSCS told me to fill in the online form. When I did this, and filled in the names of the company who advised me, it came back
    Originally posted by Trouncer2002
    FSCS could only help if the alleged mis-selling took place after January 2005. Your sale was eight years prior to that.

    In all honesty, you don't appear to have had a valid complaint and have no one left to complain to anyhow. The Citizen's Advice Bureau certainly cannot take your "complaint"

    It's game over.

    Sorry.
    • Trouncer2002
    • By Trouncer2002 4th Dec 17, 8:30 PM
    • 4 Posts
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    Trouncer2002
    • #4
    • 4th Dec 17, 8:30 PM
    Reply
    • #4
    • 4th Dec 17, 8:30 PM
    Thanks for the replies.......

    Dunstonh : Yes I realise the 3 x salary was for death in service. The CI was to pay for my mortgage if I had 'critical illness' and died, the objective being to get my mortgage paid if I was to die ! To answer your 2nd question, no I have not suffered a claimable event. Your 3rd response, I was advised to contact the CAB by the FSCS when I called them regards this query. That's why I mentioned it !

    Moneyinept : You're quite right. I couldn't predict future illness but I suppose if it wasn't for the persuasive advisers advice, I would not have taken the extra payment of having it and saved a lot of money. I would have taken the risk of 'not' taking CI as I live a relatively healthy lifestyle and no family history of premature deaths from illness. As for being in the job for 20yrs, all my employers provided Death in Service payment that would have paid off my mortgage.

    I think the answer to this is my query falls into the 'Pre-Regulation of General Insurance' which is 14th June 2005 (I believe) so I suppose that's that .

    One last question..... Is CI a type of insurance and if so, why is this not classed as PPI ?
    • zx81
    • By zx81 4th Dec 17, 8:33 PM
    • 14,403 Posts
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    zx81
    • #5
    • 4th Dec 17, 8:33 PM
    • #5
    • 4th Dec 17, 8:33 PM
    Because there are lots of insurances - life, car, pet, travel, phone, appliance - none of them are PPI.
    • IAmWales
    • By IAmWales 4th Dec 17, 8:38 PM
    • 1,864 Posts
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    IAmWales
    • #6
    • 4th Dec 17, 8:38 PM
    • #6
    • 4th Dec 17, 8:38 PM
    I don't think you understand what critical illness insurance is, it doesn't just pay out if you die. A dear friend had a payout when he had bowel cancer, he is now clear of cancer and returning to work. He has paid off his mortgage and has savings in case he becomes ill again in the future. The payout far outweighed the payments he had made.
    • dunstonh
    • By dunstonh 4th Dec 17, 9:11 PM
    • 89,943 Posts
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    dunstonh
    • #7
    • 4th Dec 17, 9:11 PM
    • #7
    • 4th Dec 17, 9:11 PM
    The CI was to pay for my mortgage if I had 'critical illness' and die
    The CIC has nothing to do with death. CIC pays out on the diagnosis of a range of specified critical/serious illnesses where you continue to live for more than 28 days. e.g. if you were diagnosed with cancer, it would pay out the lump sum allowing you to repay the mortgage and not worry about things like that whilst you have such a serious health issue.

    I was advised to contact the CAB by the FSCS when I called them regards this query. That's why I mentioned it !
    In which case, the person was fobbing you off. The CAB can do nothing.

    One last question..... Is CI a type of insurance and if so, why is this not classed as PPI ?
    PPI is classed as PPI.
    Car insurance is classed as car insurnace
    life assurance is classed as life assurance
    CIC is classed as CIC.
    PPI has absolutely nothing to do with other insurances that are not PPI.
    Its a bit like asking why a tin of beans is not classed as a loaf of bread. They are both food but thats it. PPI is a type of insurance that is different to other types of insurance.

    PPI has a particular issue but to the way banks oversold it on loans and credit cards. You can still buy PPI today in two forms. Mortgage PPI and Standalone PPI. Not all types are bad.

    but I suppose if it wasn't for the persuasive advisers advice, I would not have taken the extra payment of having it and saved a lot of money.
    Depends on what you mean by save money. CIC has very good payout rates. Statistically, you are more likely to suffer a claimable event on CIC before retirement than you are on life assurance. My youngest claimant to date was 25. I have had several in their low 30s. However, 40s and 50s is when most happen. However, try and buy CIC when you are that age and it can cost a lot more.

    So, who has saved the most money. The person that paid £2400 in premiums over the years but gets a £100k lump sum in the event of the claim or the person that didnt pay £2400 and got no lump sum.

    Personally, I hope I never have to claim on any of the insurances I have. it doesnt make them a waste of money.
    Last edited by dunstonh; 04-12-2017 at 9:57 PM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • BoGoF
    • By BoGoF 4th Dec 17, 9:18 PM
    • 2,740 Posts
    • 1,976 Thanks
    BoGoF
    • #8
    • 4th Dec 17, 9:18 PM
    • #8
    • 4th Dec 17, 9:18 PM
    No idea why you think it is a bad thing. I still have CIC on my mortgage today and it's only £7 per month. Like any insurance its something you hope you never have to claim on.
    • Trouncer2002
    • By Trouncer2002 4th Dec 17, 9:44 PM
    • 4 Posts
    • 0 Thanks
    Trouncer2002
    • #9
    • 4th Dec 17, 9:44 PM
    • #9
    • 4th Dec 17, 9:44 PM
    Ok, thank you all for responding. Appreciate the clarifications.
    • Moneyineptitude
    • By Moneyineptitude 5th Dec 17, 11:27 AM
    • 18,907 Posts
    • 10,122 Thanks
    Moneyineptitude
    I think the answer to this is my query falls into the 'Pre-Regulation of General Insurance' which is 2005 so I suppose that's that .
    Originally posted by Trouncer2002
    It's true that you won't get anywhere with this even if you had a valid complaint. However, you should take solace in the fact that you wanted to apply PPI mis-selling reasons to an entirely different (and useful) insurance. In other words, you would not have received a refund even if your "complaint" had been considered.
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